tag:blogger.com,1999:blog-22974616.post2983500200967839082..comments2023-10-02T14:33:18.136+01:00Comments on The Very Fluffy Diary of Millennium Dome, Elephant: Day 5288: Only Fools and ToriesMillennium Domehttp://www.blogger.com/profile/08430269096817934037noreply@blogger.comBlogger3125tag:blogger.com,1999:blog-22974616.post-91157144310835509102015-06-26T17:46:07.502+01:002015-06-26T17:46:07.502+01:00@RichardG (#1)
Inflation on it's own won'...@RichardG (#1)<br /><br />Inflation on it's own won't do it - it's possible to get STAGFLATION where prices go UP but GDP goes DOWN and then you are really... FLUFFED.<br /><br />It was the discovery of North Sea oil and gas (or that it became economically viable because of the oil shock) that allowed UK growth to catch up with the inflation and THAT was what made the debt/GDP shrink.<br /><br />(People call it "inflating away the debt" but that's I think a cock-eyed view of what happened.)<br /><br />Also, note that inflation is functionally equivalent to spending cuts - you get less resources delivered by the Government either way. So it's a very long way from the "pain free alternative" that people with short memories seem to think it is.Millennium Domehttps://www.blogger.com/profile/08430269096817934037noreply@blogger.comtag:blogger.com,1999:blog-22974616.post-72941152475371910442015-06-26T17:17:36.068+01:002015-06-26T17:17:36.068+01:00Oh, and, the Financial Responsibility Act could be...Oh, and, the Financial Responsibility Act could be repealed by just putting a line into the Finance Bill. It would still be a Money Bill and the Lords would still have to leave it alone.<br /><br />Even if they didn't, there's the doctrine of implicit repeal.Richard Gadsdenhttps://www.blogger.com/profile/10545595590359552775noreply@blogger.comtag:blogger.com,1999:blog-22974616.post-39204711976308041252015-06-26T17:14:32.026+01:002015-06-26T17:14:32.026+01:00There is another way to reduce national debt (not ...There is another way to reduce national debt (not deficit directly, though it might work through reducing interest payments) - deliberately cause inflation.<br /><br />Worked in the 1970s; a lot of the national debt was paid off in effect that way.Richard Gadsdenhttps://www.blogger.com/profile/10545595590359552775noreply@blogger.com